IT Project Management Weeks 2 and 3

Topics of Discussion Introduction Identify the Business Case Scope the Project Plan the Project Delivery and Outcome Closing the Project

Overview This session will introduce participants to a systematic approach to managing IT projects, whether those projects are simple or complex. Learning Outcome At the end of this session participants should be able to apply project management skills through a 5 phase process to manage IT projects. Introduction

Project Management is a process that clearly articulates a required outcome by bringing together human and other resources necessary to successfully achieve that outcome. Project Characteristics: Goal Oriented Finite life span Unique once-off effort Cost Limit Project Management functionalities involve: Planning Directing Organising Controlling Definition

Project Client/Owner(s): Individuals instigating the project and who will sign-off on the project outcome, deliverables, and performance criteria. Roles and Responsibilities Project Sponsor: The person nominated by project client/owner(s) to ensure the project achieves intended outcomes and receives appropriate support.

Roles and Responsibilities Influencers: Those who have the potential to impact the success of the project but are not directly involved in the project. Team Members: Those directly assisting to plan and ensure activities are completed. Note: Not all these roles will be involved in every project

1. Identify Business case: Does the project contribute to priority business requirements? 5-Phases of Project Management 2. Scope the project: What needs to be achieved? 3. Plan the project: What needs to be done? Note: This approach is suitable for simple as well as complex projects. 4. Deliver the Outcome: How are the plans to be implemented? 5. Close the project How to finalize? What has been achieved?

Topics How business projects should originate? Impact of Resource Limitation. How to construct a project management framework best suited to an organisation? 1. Business Case

Business Planning The planning process should result in identification of initiatives that are required to achieve the strategic direction in which the business wants to move. These will generate a number of projects which are important to the future success of the business. The projects need to be prioritised. 1. Business Case - How business projects should originate?

Process improvement A performance review of business processes in work areas may indicate the need to improve. An assessment of resources required compared to the return on investment needs to be made. If the effort is thought to be worthwhile, projects will be generated. The use of available resources and priorities will determine which projects are to be undertaken.

1. Business Case - Resources Resource Limitation Key factor in the success of IT projects is the availability of sufficient resources. Most managers have a limited budget and limited human resources. Therefore the selection of projects which best support the strategic direction of the business is essential.

Why do we need a framework? Organizations have different ways to do business. However when managing projects, it is very useful to consider the following questions: Selecting the project How will the project be selected? Identifying people involved Who should be involved? (Sponsor, project manager, team) 1. Business Case – Project Framework

Scoping the project What needs to be achieved? Who will sign-off? Agreeing the budget What resources are required? Who signs-off on budget? 1. Business Case – Project Framework

Agreeing Variations How can the project be varied? Who signs-off on variations? Signing-off Project Completion Who will sign-off? How will any transaction take place? 1. Business Case – Project Framework

Topics Project outcome statement Project deliverables and associated performance criteria Roles and responsibilities of people involved in projects Factors to be considered when selecting a project team Importance of project sign-off 2. Project Scope

The outcome statement concisely and clearly expresses the reason for the project. They normally specify what, where and when The statement should specify the intent of the project, therefore it should reflect the requirements of the project client. It normally commences with a verb to specify what needs to be done. Example: Implement an online bank loan management system for all employees of the loan department by 11/05/ Project Scope – Outcome Statement

Project Parameters Projects often have boundaries (parameters) placed on them. Example: The project involving the implementation of the on-line bank loan system can be limited to: Australian operations 2. Project Scope – Parameters and Constraints Project Constraints Time Cost Regulations – e.g tax compliance Compatibility with existing system

Project Assumptions When scoping the projects assumptions are made which can impact the ability to achieve the project outcome. Example: Availability of other parties Appropriate hardware 2. Project Scope – Assumptions and Risks Project Risks Key assumptions should be noted as they have associated with them a degree of risk.

Deliverables often : Identify major steps Provide reference points to track a project’s success. Some deliverables will be non-negotiable and specified as part of the project scope. Others will be identified when planning the project. 2. Project Scope – Deliverables

Performance criteria should be associated with the outcome statement and deliverables to allow the projects performance to be evaluated. Measures can be quantitative or qualitative Example:Implement an online bank loan system for all employees of the loan department by 11/05/2002. System to be piloted and operational by 11/05/2002 Loan sanction time reduced by 50% 2. Project Scope – Performance Measurement

When selecting a team: Cover the experience/expertise the project requires Choose people committed to the project outcome Consider stakeholders and influencers. 2. Project Scope – Team Selection

Sign-off, of the project scope, by the project client will ensure: The outcome statement reflects the project intention. Project parameters and constraints are appropriate. Project deliverables and criteria are acceptable. 2. Project Scope – Sign-off of project Scope

Topics Identify tasks using work breakdown structure Complete action plans Construct Gantt chart Determine project budget Write prevention and contingent scenarios for significant project risks 3. Planning the Project

Work Breakdown Structure (WBS) It is a logical structuring of project work. STEP1: Identify the key activities required to achieve the outcome. STEP2: The identified activities are broken down into tasks and if the project is complex enough, sub tasks and beyond. The key activities may often identify the DELIVERABLES for the project. 3. Planning the Project – Identifying Tasks

3. Planning the Project – WBS Task 2.2 Outcome Activity 1 Activity 2 Task 1.1 Task 1.2 Task 1.3 Task 2.1 Task 2.3

3. Planning the Project – Action Plan Activity No:__________________________ TasksWhoCostWhen Scheduling of tasks Estimating duration of each task Total Cost:

3. Planning the Project – Scheduling 1.Network Diagrams A network diagram shows the sequence and dependencies of tasks required to complete the project. a c b d f e ActivityDependency aNone ba ca da ed fb,c - event or nodes - activity/task - dummy activity/task Pert Method

3. Planning the Project – Scheduling 2. Gantt Chart The Gantt Chart is a simple representation of the activity/tasks against time. Often utilized when presenting project plan as they are more easily understood by an audience not involved in the intimate detail of the project.

3. Planning the Project – Budget TaskTime CostDollar Cost Total Cost The total cost of the project can be calculated once all the action plans have been completed.

3. Planning the Project – Risk Management SIGNIFICANT RISKS CONTINGENT PLANSPREVENTIVE PLANS Actions to reduce the likelihood of the risk Action planned in case the events occur

3. Planning the Project – Sign-off of Plan/Budget Sign-off of the project plan and budget by the project client/owner will ensure expectations are clear for: project timing resource consumption, and dollars

Topics Discuss the elements required for “start-up”. Discuss operating procedure. Determine information system requirements. 4. Delivering the Outcome

4. Delivering the Outcome – Project Start-up The project start-up requires the following elements: appointing and developing the project team acquiring equipment and materials obtaining the necessary space and facilities

4. Delivering the Outcome – Team Roles Team Skills Successful Team += Team Roles T ogether E veryone A chieves M ore

4. Delivering the Outcome – Information System This is a communication process through which a project manager, team, sponsor and other key players receive information regarding the project’s progress. Who we need to communicate with The mode we will use to communicate When/How often we will communicate

Topics Identify requirements to phase out the project Discuss the value of reviewing the the project management framework 5. Closing The Project

Managing disposition of people on the team, and no longer required materials and facilities obtaining final sign-off preparing a final report 5. Closing The Project – Phasing Out

If the project has been scoped correctly, the results should be clear from: the outcome statement, the deliverables, and the list of performance criteria, including acceptable outcomes from a test team. 5. Closing The Project – Reviewing Results

5. Closing The Project – Process Review The various processes involved in managing the project should be assessed. Team selection Communications Project Definition Scheduling Budgeting Testing Look at the strengths – repeat them Examine the weaknesses – eliminate them